EUROPE ADVANCED METERING INFRASTRUCTURE MARKET ANALYSIS

Advanced metering infrastructure (AMI) is an integrated system that comprises smart meters, software, communication networks, and data management that enables two way communication between customers and utility companies. The main purpose of AMI is to provide real-time data regarding power consumption to the utility companies and enable customers to save cost and energy based on the consumption. The increasing deployment of smart meters in residential sector is expected to drive the Europe advanced metering infrastructure market growth. The market was valued at US$ 5,410.7 million in 2020, and is expected to witness a CAGR of 9.2% during the forecast period (2021 – 2028) and reach US$ 10,825.6 million by 2028.

The rising number of government rules and regulations for implementation of smart meters is expected to drive market growth during the forecast period. Governments across Europe are issuing regulatory norms and legislative directives for installation of smart grids as well as smart meters. For instance, the European Union had replaced traditional electricity meters with advanced infrastructure in 2020, which would create lucrative opportunities for players operating in the advanced metering infrastructure market over the forecast period. Electricity providers are using smart meter data to improve grid operations, integrate distributed energy resources, and provide customer services. Additionally, through smart metering infrastructure, customers are regularly updated regarding their recent usage of electricity, which can help them track and manage their electricity bills.

Europe Advanced Metering Infrastructure Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 has significantly disrupted almost all the industries including infrastructure, transportation, oil and gas, manufacturing, and others. To combat COVID-19 pandemic, most of the countries had implemented lockdown restrictions, which are now being eased slowly on phase-wise and industry-wise basis. The power sector has witnessed a falling demand and price reduction trend across the Europe. Manufacturers of hardware devices in the Europe advanced metering infrastructure market are facing several issues related to order closures due to lockdown imposed in various countries in the Europe.

Furthermore, utilities across the Europe have also announced the suspension of disconnection due to non-payment and delayed payment plans of customers impacted due to COVID-19 pandemic, which is expected to hamper market growth during the forecast period. Lockdowns in most of the European countries are expected to continue to curb the electricity demand, hampering the sales of utilities and other companies operating in the power sector. For instance, ABB, a Switzerland based automation company, faced decline in profitability in 2020 due to lower production volumes in all its businesses as compared to the sales volume in 2019.

Rest of Europe is expected to hold dominant position in the Europe advanced metering infrastructure market during the forecast period.

Statistics:

Rest of Europe held dominant position in the Europe advanced metering infrastructure market in 2020, accounting for 18.7% share in terms of value, followed by Germany, France, and others.

Figure 1: Europe Advanced Metering Infrastructure Market Share (%), By Country, 2020

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Among country, Rest of Europe held dominant position in the Europe advanced metering infrastructure market in 2020, and is expected to retain its dominance throughout the forecast period. This is due to rising construction activities in the Rest of Europe countries. For instance, according to Coherent Market Insights’ analysis,  Rest of Europe advanced metering infrastructure market was valued at US$ 1,011.5 Mn in 2020 up from US$ 846.8 Mn in 2017. The market is projected to generate revenue of US$ 2,159.6 Mn by 2028, exhibiting a CAGR of 19.8% over the forecast period.

Hardware segment is expected to drive the market growth during the forecast period.

Among component, hardware segment is expected to hold dominant position in the Europe advanced metering infrastructure market during the forecast period. Hardware segment is divided into three types: smart meter, communication module, and others. Smart meters are internet-based measuring devices used for measuring water, electric, and gas consumption in commercial, residential, and industrial areas. There are three types of smart meters such as gas meters, water meters, and electric meters. Smart meters provide support to utility companies by offering reliable and cost effective services to their consumers. Smart meters collect electric consumption data in 5, 10, 15, and 20 minutes intervals based on customer premises. Therefore, there is increase in adoption of smart meters in residential and commercial sector. For instance, according to Coherent Market Insights, installed base of smart meters in the Europe is expected to be around US$ 230 million by 2020.

Figure 2: Europe Advanced Metering Infrastructure Market Value (US$ Mn) Analysis and Forecast and Y-o-Y Growth (%), 2017 - 2028

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The Europe advanced metering infrastructure market was valued at US$ 5,410.7 Mn in 2020 and is expected to reach US$ 10,825.6 Mn by 2028 at a CAGR of 9.2% between 2021 and 2028.

Major players operating in the Europe advanced metering infrastructure market include Landis+Gyr, Itron Inc., Siemens AG, General Electric Co., IBM Corporation, Eaton Corporation, Aclara Technologies LLC, Elster Group GmbH, Schneider Electric SE, Gemalto, Cisco Systems, Inc., EDMI Limited, Diehl Stiftung & Co. KG, Apator SA, Flonidan A/S, and Sensirion AG.